$Singtel 5xLongSG280307(XNEW.SG)Singtel giving back some of the recent gains, and my 5x position is back in the red again. Not exactly where I wanted to be, but for now I still see this more as a pullback than a reason to abandon the trade.

The main reason is that the fundamental picture underneath Singtel is actually quite healthy. FY26 underlying net profit grew 12% to S$2.77b, with contributions coming from several different engines — Airtel, AIS, NCS, Digital InfraCo and Optus. Net profit was S$5.61b, although part of that came from exceptional gains, so I prefer looking at the underlying number when judging the business.

What I like about Singtel now is that it is becoming more than just the traditional Singapore telco story. Regional associates are contributing strongly, NCS gives exposure to enterprise digitalisation, while Digital InfraCo gives them another angle through data centres and AI infrastructure. Even in H1, management was already seeing healthy data-centre demand and contributions from its AI cloud business.

Capital return is another part of the thesis. FY26 produced Singtel’s highest annual dividend at 18.5 cents per share, and the company is still executing its S$2b value-realisation share buyback programme. Recent SGX announcements show buybacks continuing through July.

Of course, it’s not completely clean. Optus remains the part I would watch carefully, especially with the regulatory and operational issues in Australia. And because I’m holding the 5x DLC rather than Singtel shares directly, even a relatively normal correction.

So I’m not blindly bullish here. I just don’t think a few weak sessions are enough to invalidate the bigger thesis yet. I’ll watch whether Singtel can stabilise after this fallback and whether buyers return. If the underlying trend recovers while earnings and capital returns remain supportive, I still think there is room for another leg higher.

For now, holding and giving it some time. @Captain's Treasure